Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

How Does Local–Global Identity Affect Price Sensitivity?

How Does Local–Global Identity Affect Price Sensitivity? The authors propose that when consumers’ local identity is accessible, they are less likely to be price sensitive because of a sacrifice mindset. Six studies using divergent measures of the independent and dependent variables as well as diverse samples (students and nonstudents, U.S. and Chinese residents, primary and secondary data) produce consistent results. Furthermore, the authors demonstrate the mediating role of a sacrifice mindset by both measuring and manipulating this construct; they also identify boundary conditions of the association between a consumer's local identity and price sensitivity. Previous research has shown that consumers with a local identity display lower price sensitivity to brands with a local origin. In contrast, the results from this research show that consumers with a local identity display lower price sensitivity even to products with an ambiguous origin. Firms using a globalization strategy can try to activate consumers’ local identity to make them less price sensitive to their brands, without having to position the brands as local. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Marketing SAGE

How Does Local–Global Identity Affect Price Sensitivity?

Journal of Marketing , Volume 81 (3): 18 – May 1, 2017

Loading next page...
 
/lp/sage/how-does-local-global-identity-affect-price-sensitivity-0XVFRInAFA

References (44)

Publisher
SAGE
Copyright
© 2017 American Marketing Association
ISSN
0022-2429
eISSN
1547-7185
DOI
10.1509/jm.15.0206
Publisher site
See Article on Publisher Site

Abstract

The authors propose that when consumers’ local identity is accessible, they are less likely to be price sensitive because of a sacrifice mindset. Six studies using divergent measures of the independent and dependent variables as well as diverse samples (students and nonstudents, U.S. and Chinese residents, primary and secondary data) produce consistent results. Furthermore, the authors demonstrate the mediating role of a sacrifice mindset by both measuring and manipulating this construct; they also identify boundary conditions of the association between a consumer's local identity and price sensitivity. Previous research has shown that consumers with a local identity display lower price sensitivity to brands with a local origin. In contrast, the results from this research show that consumers with a local identity display lower price sensitivity even to products with an ambiguous origin. Firms using a globalization strategy can try to activate consumers’ local identity to make them less price sensitive to their brands, without having to position the brands as local.

Journal

Journal of MarketingSAGE

Published: May 1, 2017

There are no references for this article.